South Korean stocks fall on US policy tightening concerns; bond yields jump

Overview of South Korean financial markets:

**South Korean stocks fell for a third straight session on Friday, following Wall Street’s losses on the outlook for aggressive monetary tightening in the United States. The Korean won traded flat, while the benchmark bond yield hit a more than 11-year high.

**The benchmark KOSPI fell 5.71 points, or 0.26%, to 2,212.38 at 0106 GMT and is expected to post a second weekly loss.

**Philadelphia Federal Reserve Chairman Patrick Harker said on Thursday that the central bank was not done raising its short-term rate target amid sky-high levels of inflation, pushing down equities and sharply increase bond yields.

** “Losses were capped as the market priced a jump in US Treasury yields on the hawkish commentary and reduced risk following the UK prime minister’s resignation,” said Na Jeong-hwan, an analyst at Cape Investment and Securities.

** Tech giant Samsung Electronics rose 0.72% and peer SK Hynix gained 1.00%.

**Battery maker Samsung SDI jumped 6.62%, expected to post the biggest daily gain since March 2021, while peer LG Energy Solution fell 0.51%.

** Still, most stocks fell. Of the total issues traded of 923, the number of shares advanced was 204.

**Foreigners were marginally net buyers on the main draw, buying 1.3 billion won ($906,618).

** The won was quoted down 0.01% at 1,433.5 to the dollar on the onshore settlement platform and was expected to post a second weekly loss. In offshore trade, the won was quoted down 0.3% at 1,434.1.

** In money and debt markets, December three-year Treasury bill futures fell 0.27 points to 101.22.

** The most liquid Korean three-year treasury yield jumped 11.6 basis points to 4.435%, while the benchmark 10-year yield rose 8.5 basis points to 4.500%, reaching its highest level in more than 11 years. ($1 = 1,433.9000 won) (Reporting by Jihoon Lee; Editing by Uttaresh.V)

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